Why You Should Hire a High-Net-Worth Financial Advisor and How to Find One

People today are busier than ever, and managing your finances can be a time-consuming or even stressful endeavor. This is especially true for those with a high net worth, complex financial needs, or a demanding profession that dominates much of their time, such as business owners, medical professionals, and CEOs. Many people put off or ignore their finances, placing financial goals on the back burner instead of actively establishing and following a strategic financial plan to make their money work for them. They may not have the time, energy, or desire to manage their own finances, so they should seek the help of an experienced professional who can lighten their load and help them make wise financial decisions.

Why You Should Hire a Financial Advisor

If you wanted to get in shape, you would hire a professional trainer, and if you wanted to begin to ski, you would hire a ski instructor. Financial advisors and wealth management professionals add value by simplifying and streamlining the process of striving toward financial security and comfort. They apply their financial knowledge and professional experience to each client’s unique financial situation to provide comprehensive financial planning and objective recommendations based on fiduciary best practices and tailored to the client’s goals and unique considerations.

Working with a financial advisor can prevent you from making costly financial mistakes and can provide accountability and guidance in implementing your financial plan. Moreover, financial advisors can take on the time-consuming tasks of market research and asset management, working behind the scenes to ensure your accounts remain balanced according to your plan and executing any orders or sales on your behalf. You can relax and focus on your other priorities, knowing that an experienced professional with your best interests at heart is keeping an eye on your finances.

Why You Should Choose an Advisor Who Specializes in Working with High-Net-Worth Individuals

Finances are often deeply personal and unique to each individual. A recent college graduate looking to start their first IRA and a high-net-worth business owner seeking help with setting up retirement plans for their employees have vastly different needs, and they need financial advisors with different areas of focus. High-net-worth individuals should partner with advisors who have experience working with other high-net-worth clients and who can provide the services they need the most.

If you’re early in your career or have recently come into a large sum of money through inheritance or a job transition, you may need a financial advisor who can guide you through the financial aspects of significant life milestones such as marriage, buying a home, or family planning. Your needs may change, and your priorities may shift as you age. It’s important that you work with someone who has experience helping others in similar financial positions.

If you have a high income or are in the peak of your earning years, you may benefit from working with a financial advisor who specializes in tax planning and can ensure you are only paying the taxes you legally owe. Reducing your tax burden will leave more of your income free to build wealth, invest, and put toward other high-priority goals. A financial advisor with experience in tax planning can help you minimize capital gains taxes and ensure you are taking full advantage of every tax-advantaged investing account available to you. If you already have a sizeable nest egg or are nearing retirement age, you may need a high-net-worth financial advisor with experience helping individuals transition into retirement. These advisors can help you increase your retirement income and set up a spending plan so you feel comfortable and confident knowing you will always have enough to sustain the luxurious retirement lifestyle you’ve been working toward. These advisors can also help you establish or update an estate plan to guide how your money and other assets will be distributed after your passing.

How to Find a High-Net-Worth Financial Advisor

Before contacting an advisor, it is wise to take a moment to consider what you want to get out of the relationship, what your goals are, and areas where you would benefit from assistance or guidance. Experienced financial advisors can help you shape those ideas into a strategic financial plan and highlight additional considerations or opportunities you may not have considered.

After you’ve developed a general idea of your goals and needs, you can begin looking online or asking colleagues and family members in a similar financial position for advisor recommendations. Make sure the advisors you consider are trustworthy and have experience working with high-net-worth clients. Additionally, evaluate the costs and potential conflicts of interest associated with each advisor you consider. Financial advisors are held to a fiduciary standard and required to prioritize your financial benefit over their own, but they will still charge a fee or be paid in commissions for their services. It is important to understand how your advisor will be paid and how that can affect your overall investment returns.

Once you’ve selected a few advisors who interest you, you can begin making appointments to learn more about their services and how they can help you work toward achieving your goals. These initial appointments are an excellent opportunity to ask questions about the advisor’s education and experience, their fee structures, and the philosophy that guides their approach to financial services. Make sure you are compatible with the advisor and understand all the benefits and drawbacks associated with hiring them. You should feel comfortable asking questions and sharing personal details about your income, debts, assets, and plans for the future.

Follow these four steps to begin your search for a financial advisor who specializes in working with high-net-worth individuals.

Think about your financial goals.
Use those ideas to guide your online search for financial advisors.
Seek personal recommendations and referrals.
Make an appointment to meet with an advisor.

If you are ready to take the next step in your or your business’s financial journey, you’ve already got a head start in finding a top-notch financial advisor. Business & Financial Strategies has a team of financial professionals prepared and excited to have a 20- to 30-minute in-person or virtual initial conversation with you about your financial goals and needs. Its financial advisors provide personalized guidance tailored to help you make prudent and strategic moves that align with your financial objectives, time horizon, and risk tolerance. Business & Financial Strategies has offices in the Iowa City/ Coralville area and Fairfield, Iowa, and they serve clients from all around the United States. To learn more, call 319-358-7700 or go to www.BFSFinanicalPlanning.com to schedule a complimentary initial conversation.